Potamkin Auto Exec Sues Developer of His $22M Surf Club Condo in Surfside
Alan Potamkin says the developer's work was deficient, but Fort Partners' attorney maintains some of the problems may have been caused by Potamkin's own contractor.
October 31, 2019 at 03:30 PM
4 minute read
Alan Potamkin, executive and heir to the auto dealership chain founded by his father, paid $21.85 million for a beachfront condo in Surfside's Surf Club but wasn't happy with the way it turned out.
Potamkin said he and Miami developer Fort Partners LLC agreed the company would build out the unit in line with Potamkin's plans, but Fort Partners failed to meet some of the requirements and other construction thresholds, including the state building code.
Potamkin sued the Fort Partners affiliate that sold him the unit in Miami-Dade Circuit Court, listing counts of negligence, breach of contract, breach of oral agreement, breach of implied warranty, fraud in the inducement and building code violations.
John Moore, a former Pathman Lewis attorney in Miami, filed the complaint last December, and the case has been moved to the complex business litigation division.
The case still is handled by Pathman Lewis with partner Aaron Tandy now representing Potamkin.
Fort Partners hasn't repaid nearly $560,000 spent by Potamkin to fix the unit and stay elsewhere in the meantime, despite the developer agreeing to cover the revamp and lodging costs, according to the complaint and an invoice another Potamkin attorney sent to Fort Partners.
This isn't exactly what's going on as some or all of the alleged defects might be Potamkin's doing, said Fort Partners' attorney Scott Kravetz, a partner at Duane Morris in Miami.
Potamkin said his understanding with Fort Partners was to leave the ceiling and floor in raw condition for Brodson Construction Inc. in Miami to add his preferred finishes.
Kravetz maintains Potamkin's contractor did extensive work and some of the alleged defects could be as a result of that.
"That included an enormous amount of work. It included MEP work, which is mechanical, electrical and plumbing work," Kravetz said. "At this point we are not even sure if the issues may be related to something the developer's contractor did or something that was caused by Mr. Potamkin's own contractor."
Potamkin bought the 9,279-square-foot, six-bedroom unit Feb. 5, 2018.
As Brodson Construction started work, it discovered issues that weren't visible during Potamkin's pre-closing walk-through, likely because the developer had covered them up, according to the complaint. They included light trims installed less than a half-inch from the slab and in some cases within the slab, damaged ducts, and electrical and low-voltage cables installed without proper support.
The light fixture placement could lead to overheated lights, and the unsupported cables could result in ceiling sag and cracks, the complaint said. The installation also didn't meet the manufacturer's specifications.
The two sides exchanged emails for months with Fort Partners at least twice requesting additional records on Potamkin's $560,000 cost figure. Moore last September took issue with the delay in payment.
"Your delay in responding is more than troubling," he wrote in an email to Michael Kashtan, Fort Partners' general counsel. "You requested information and we provided it, you requested more information and we provided it on Aug. 27. It has been a month, and this has not moved any further from your end. My client's patience is understandably wearing thin."
Fort Partners in a Sept. 27 motion to dismiss argued Potamkin didn't meet certain statutory requirements before filing a claim for construction defects.
Potamkin inherited an auto dealership empire his father started in Philadelphia. He co-chairs Hialeah-based Potamkin Automotive Group Inc., which sells and services Cadillac, Dodge, Jeep, Toyota, Fiat and other vehicles, with his brother, Robert Potamkin.
Their father, Victor Potamkin, started the business in the 1940s, opening a Lincoln-Mercury dealership with a business partner in Philadelphia. Over time he acquired existing dealerships and stores.
The Surf Club, on the northeast corner of Collins Avenue and 90th Street, includes 150 condominium units in two 12-story buildings and a 77-key Four Seasons Hotel.
The hotel rises west of the original barrel-tile roofed Surf Club, an exclusive club and storied hideaway for big names such as Frank Sinatra and Elizabeth Taylor.
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